Economic Impact

August 8, 2019 — It’s been one year, so how’s that trade war with China working out for the nation’s seafood industry?

As with farmers, there’s not much winning and ongoing tweeted skirmishes have global fish markets skittish.

The quick take is the 25 percent retaliatory tariff imposed by China on U.S. imports last July caused a 36 percent drop in U.S. seafood sales, valued at $340 million, according to an in-depth analysis of Chinese customs data by Undercurrent News.

“Chinese imports of US seafood fell from $1.3 billion in the 12 months prior to tariffs (July 1, 2017-June 30, 2018), to $969 million in the 12 months after (July 1, 2018-June 30, 2019), underlining the heavy impact of weaker demand for U.S. seafood subject to tariffs, while poor catch of U.S. wild-caught seafood was also to blame,” the News wrote.

August 7, 2019 — Bumble Bee Foods is considering filing for bankruptcy to alleviate it of increasingly dire financial situation.

The San Diego, California, U.S.A.-based firm, which claims it is the largest seller of packaged seafood in North America, exceeded the leverage ratio it is allowed under the terms of its senior debt, according to Bloomberg. That sent the firm into technical default on its principal operating loan, a USD 650 million (EUR 550 million) facility with Brookfield Principal Credit as the administrative agent. However, its lenders have agreed to a forbearance period, allowing the company to continue its efforts to restructure itself to regain its profitability, according to the Wall Street Journal.

August 7, 2019 — As President Donald Trump announced new tariffs on China last week in a trade war with no end in sight, American salmon fisherman Sven Stroosma set his sights on the blue waters of the Gulf of Alaska, piloting his boat Voyager in search of a big salmon catch.

Alaskan salmon are running, and Pacific Northwest fishermen like Mr. Stroosma have only a few intense weeks in July and August to catch enough to sustain their family income for the coming year. Rough seas, equipment failures, and dry streams that limit spawning all threaten to hurt their haul.

This season, the U.S.-China trade conflict has increased pressure on salmon fishermen by depressing the price offered for their hard-earned catch. China, the biggest importer of Alaska seafood, included the industry in a 25% tariff increase imposed last year.

August 7, 2019 — It’s been one year, so how’s that trade war with China working out for the nation’s seafood industry?

As with farmers, there’s not much winning, and ongoing tweeted skirmishes have global fish markets skittish.

The quick take is the 25 percent retaliatory tariff imposed by China on US imports last July caused a 36 percent drop in US seafood sales, valued at $340 million, according to an in-depth analysis of Chinese customs data by Undercurrent News.

“Chinese imports of US seafood fell from $1.3 billion in the 12 months prior to tariffs (July 1, 2017-June 30, 2018), to $969m in the twelve months after (July 1, 2018-June 30, 2019), underlining the heavy impact of weaker demand for US seafood subject to tariffs, while poor catch of US wild-caught seafood was also to blame,” the News wrote.

August 2, 2019 — U.S. President Donald Trump tweeted Thursday, 1 August, that once again a trade deal had fallen through with China, and as a result, the United States would seek to impose a 10 percent tariff on the remaining USD 300 billion (EUR 270 billion) in goods the U.S. imports from the world’s most populous country.

“We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing,” Trump stated.

August 2, 2019 — One lesser-known impact of the trade war between the United States and China is the abrupt end to reform of China’s seafood and soy trading system, which had been underway as part of a package that would also address the country’s underperforming commodities exchanges.

In the past decade, there has been discussion in China in favor of dismantling the system of state supports for the grain and oilseed sector so that prices come into line with the international market. There was also talk of a fish futures contract in Dalian and even much reported rumors of a Chinese takeover of the Chicago Stock Exchange as part of greater Chinese participation in international commodity price-setting institutions. However, all of those moves appear to be parked for now as China uses soy purchases as a weapon in its trade dispute with the U.S.

August 1, 2019 — The merger of the two largest US Pacific cod longline catching companies is under review by the US Department of Justice (DOJ), sources familiar with the deal told Undercurrent News.

If the DOJ approves the merger, the combined company will be renamed Blue North Clipper (BNC) and then, around 30 days later, acquired by the Bristol Bay Native Corporation (BBNC), the sources said. BBNC is set to take 75% of BNC, with the existing shareholders of both companies owning the rest.

It’s thought BNC will be relocated to the offices of Clipper, which is seen as being the driver of the deal, they said. It’s also thought Dave Little, the main shareholder in Clipper, will ultimately head up the combined company. Patrick and Michael Burns, the brothers who founded Blue North, will also remain involved, sources said.

July 29, 2019 — Chesapeake Bay crabs have been so plentiful this year — a 60 percent increase over last year, according to an annual population survey — that locals such as Maryland Gov. Larry Hogan (R) have cheered the bumper crop as a sign of good stewardship for the bay and its fisheries.

And yet market prices for blue crabs seemed barely to move at all.

Around the Fourth of July — when crabpicking reaches its peak — prices for premium male crabs known as jimmies were about as high or higher than they were last year, at $325 and up for a bushel.

Jimmy’s Famous Seafood in Baltimore — a restaurant that has been in a running feud with PETA over whether to eat crabs at all — was advertising Friday a price of $79 for a dozen crabs, dining in only.

July 25, 2019 — SEAFOOD NEWS — Revenue from tuna caught within the Economic Exclusive Zones (EEZs) of Pacific Island Countries is expected to decline by 2050, according to Johann Bell, senior director of Pacific tuna fisheries at Conservation International.

He told PACNEWS climate change will affect revenue generated from the industry.

“What we’ve done with the recent modelling is actually look at how the biomass of tuna might change within the EEZ of Pacific Island countries and territories and how it might change in the high seas areas.

“And the modelling that we have now is indicating that by 2050 there is likely to be a 15 percent movement of the amount of tuna in the EEZ onto the high seas. So yes that will affect the revenue of several countries because if you make the assumption that the revenue is proportional to how much tuna we have in our waters, then that is likely to change and countries will get less revenue,” Bell told PACNEWS in Noumea at the end of the Pacific Community workshop for the UN Decade of Ocean Science for Sustainable Development 2021-2030.

Bell said climate change will continue to increase the surface temperature of the ocean and this will cause skipjack and yellowfin tuna species to shift significantly to the East.

He told PACNEWS regional governments will receive less revenue because foreign fishing fleets will take more of their tuna catch from the high seas where they do not have to pay fishing license fees.

“There are some countries further to the East where the amount of tuna in their EEZ is likely to increase and they might expect to get greater catches.

“So if you look at the numbers at the moment, in 2016 license fees revenue for all the Pacific Island Countries and Territories was about US$465 million with 15 percent of the biomass of tuna moving from the EEZ onto the high seas. So we could be looking at a change in license revenue of about US$60 million, a loss of license revenue collectively across the region by 2050,” said Bell.

He said a promising way to cushion Pacific island economies against a loss of license revenue would be to explore how best to add value to tuna.

Bell said they are also exploring how best to help the region retain the rights to the tuna resources that currently occur within their EEZs, regardless of displacement of the fish by climate change.

This would mean that although some tuna would no longer physically be in the EEZs of a Pacific island nation, these tuna would still belong economically to that country, said Bell.

This story was originally published on SeafoodNews.com, a subscription site. It is reprinted with permission.

July 25, 2019 — As any commercial fisherman knows, fishing is a risky business. Fluctuations in markets, regulations, fish populations and the weather — not to mention the climate’s growing volatility — can result in fluctuating income that can threaten a fisherman’s livelihood.

Buffering against these fluctuations might mean taking a page from another risky business: the stock market.

A growing body of research is showing that, in most cases, fishermen are more likely to have stable year-to-year incomes if they diversify their fishing portfolios, much like an investor would diversify a stock portfolio, giving them a safety net to weather whatever the year brings.

“It can really pay for fishermen to diversify,” said Anne Beaudreau, a fisheries professor at the University of Alaska Fairbanks.

But there’s a surprising and troubling hitch to the promise of diversification. Alaskan fishermen are trending in a different direction — fewer people are fishing, and they are fishing fewer types of fish.